This study has been designed to analyze the marketing functions and problems in dairy business of women SHG members in such a way that it would be useful for the departments and policy makers of the Government in developing programmes for the development of women through SHGs. The study may help the SHGs in the fields of effective functioning, availing of credit facility, building a bridge between formal financial institutions and other research institutions, designing and developing alternative economic activities, coordinating the efforts of various departments of Government and the schemes and programmes of Government, NGOs and SHGs. In Tiruvallur District, due to the intervention of ILO, NGOs like MSSS, IRCDS and other NGOs, many bonded labourers who were working in Rice mills and Brick Kiln sectors have come out of their bondage and they have taken up dairy activities. As there are no studies available in these activities, this study could be presumed to be useful to these target groups in order to strengthen these released bonded labourers in dairy activities.